compared to the next couple days. >> the trend is heading in the right direction. >> thanks so much tony that does it for us this morning, join us back here tonight at 6 for the latest new, and weather see you then >> i'm chris wallace, a military helicopter is shot down in afghanistan killing u.s. special operations troops and we'll have a report. america's credit rating is downgraded for the first time ever. ♪ here sits wall street and main street. we'll talk about the hit washington took from standard & poor's in an exclusive interview with david beers, head of the agency's government rating unit and with the u.s. deeply had debt what can and should washington do to boost the economy? we'll ask paul ryan, republicann chair of the house budget

committee and bill miller head of legg mason capitol management and it is showdown time in iowa. we'll talk to a candidate that has a lot riding on the caucus state, tim pawlenty . thursday fox news debate and exclusive saturday's straw poll, the stakes are high. we'll ask our panel who has the most to win or lose in iowa, all right now on fox news sunday. hello, again from fox news in washington. before we get to the economy, we'll bring you the latest on the terrible story out of afghanistan. insurgent shot down a u.s. military helicopter saturday killing 38 including 22 navy seals from the same unit that took down osama bin laden. fox news correspondant conner powell has more from cabble. conner? >>reporter: chris, this is a devastating blow to the small

tight-knit community of special operations in afghanistan. it is a single deadliest day for american troops. the military is investigating the cause of the crash. the taliban were quick to claim responsibility saying they shot it down with a rocket-propelled grenade. the force was beginning to launch a raid in taliban compound southwest of kabul when the taliban rocket did take the helicopter down. in recent months, the u.s. military has been fond of saying they wrestled the momentum from the taliban. but this deadly attack is all the more evidence that the taliban are capable of launching attacks against the u.s. and afghan forces and chris, this war is no where near being over. >> chris: conner powell reporting from kabul. thanks for that. now the u.s. economy. standard & poor's downgraded the u.s. credit rating friday night for the first time ever from

triple a to double a plus. that means u.s. treasury bonds are no longer considered the safest investment in the world. joining us now is david beers head of the unit. what is the practical affect. if the u.s. debt is riskier does that mean investors can and should demand higher interest rate to buy u.s. treasury bonds? >> i guess there are two parts to that. one is that in lowering the rating by one notch to double a plus we say there is a mild deterioration in the u.s.'s credit rating relative to triple a and we'll find out tomorrow what the market makes. based on historical experience we don't expect that much financial impact in terms of higher interest rates for example. >> chris: let me ask you about the market. the teleavive opened six percent

down and then they had to close it for a while because of the volume of trading. can we expect the same kind of very strong downward pressure in asia tonight and u.s. markets tomorrow? >> guest: i am no better than you in forecasting the stock market. it is important to put it in perspective for the viewers. a lot of what is worrying the markets is the unfolding story in europe and a also a perception from a global economic perspective that the world economy may be slowing down. i think the markets are reacting to a lot of factors and not just what s&p said on friday. >> chris: your downgrade focuses on the political grid lock in washington as it did in the economic situation in this country. do you hold republicans or

demdeps -- democrats responsible for the dysfunction. do you need to see a mix of entitlement reform and revenue increases? >> guest: chris, in this country congress and the administration are jointly responsible for the conduct of fiscal policy. so this is really not about either political party. it's about the difficulty of all sides in finding you know, a consensus around fiscal policy choices, now and in the future. >> chris: do you need to see the mix? does the compromise have to have entitlement reform and increases to be credible. >> guest: we think credibility and any agreement would command support from both political parties. of course, the composition of congress and the administration could change from 2012 onwards.

but the key thing, yes entitlement reform is important because entitlement is the biggest component of spending and they are the part of spending where the cost pressures are greatest. >> chris: the white house is not happy with the decision and they have accused with amateurism. they went through your numbers and found a two trillion overstatement and they pointed it out. you changed the rational and downgraded the debt. >> guest: that is a misrepresentation of what happened. here we are talking about projecting budget base lines far in the future. we made the motifications that we did after a conversation with the treasury, it doesn't change the fact that in our estimation, that even with the agreement of

congress and the administration this past week, that the underlying debt riden of the u.s. government is rising and continue to rise over the next decade. >> chris: i will have a minute left and ask you to do two questions. s&p is widely seen as one of the villians in the housing bubble for the strong rating that you gave for the subprime mortgage securities. some people are suggesting that the downgrading is an effort to get your reputation back? >> guest: that is completely untrue and as a matter of fact, the group i rate and the group that rates government ratings has an excellent track record in terms of what ratings are designed to do and provide a meaningful rating for credit risk. fars our track ratings they are robust. other people think they are

robust, too, d we think that will continue to bes case. >> chris: very briefly mr. beers, given the economic and political situation in the u.s., which will we see an upgrading back to triple a or further downgrades? >> guest: we have a negative outlook on the rating and we think that the risk currently are to the down side. >> chris: mr. beers, we'll have to leave it there. thank you for coming in and talking with us today. >> guest: thank you, chris. >> chris: the s&p was one more blow in the down. here to discuss what can and should be done to bolster the economy is congressman paul ryan, from the state of the wisconsin and here in the studio bill miller head -- welcome to fox news sunday.

start with the s&p downgrade. congressman rian, if the u.s. is forced to pay more in interest rates isn't that going to add tens of billions to the deficit? >> if we go up another point it adds a trillion or more over a 10-year window. yes. i am not surprised with the downgrade. we more or less saw it coming. we'll find out what spike in rates we are going to get. obviously not only did it hurt the federal government but hurts people. car loans and home loans, will go up. it is because washington doesn't have its fiscal house in order. this is vindication of our action and we passed the budget that would have prevented the downgrading from happening in the first place. it would make the debt peak and

go down thereafter . we put out a specific plan to address the situation pay off the debt and balance the budget and reform the tax code and create jobs. you have to have spending cuts and economic growth and job creation. >> chris: congressman ryan, isn't that like a doctor saying i did the operation perfectly but the patient died? >> well. >> chris: let me finish. in its announcement s&p condemned the political dysfunction here in washington and the grid lock here in washington. we'll put up what they said. it highlights america'sernance and being less attractive and predictable than what we previously believed. if they had passed your budget that would have solved the debt problem, but the chances they were not going to pass it unless

the democrats and the president fell over. isn't the failure to compromise part of the problem? >> both political parties are responsible for the mess we have. it is not a democrat or republican problem only. both parties got us to where we are. in the lastt couple of years, we have gone deeper in the wrong direction. the kind of compromise, like the gentleman said entitlements . the president and the senate have always been unwilling to put a specific plan out. the president created two health care entitlements and put the rationing board in charge of medicare. they are unwilling to open up the entitlements which according to s&p is the drive of the debt. we haven't got the compromise because our partners are unwilling to go to the cause of

the problem. >> chris: let me bring in bill miller. how do you expect the market to react to the downgrade. will it rise for the treasury, government borrowing debt and filtering down to someone who wants a mortgage or car loan. >> the tel aviv you the initial reaction. s&p downgrade puts uncertainty in the market. i don't expect we'll have more for interest rates. it is an important one but usually what the s&p gentleman said it is a meaningful indicator of credit risk. the u.s. is not worse now than two weeks ago. we can print money and our fiscal situation has not change we have made a move to make it better. >> chris: get back to the market

side. that's what people are focusing on. you predict a bad day. >> there was a lot of panic last week. it is all about uncertainty, chris. we don't know. we'll see how the market react. >> chris: in a time when growth for the first quarter of this year was less than one percent in the first half of the year, what kind of -- what can and should washington do to boost the economy. mr. miller, let me start wu. the debt deal signed this week. will cut 25 billion in 2012 . 47 billion in 20 13 and 29 billion in 2014. >> that by itself will not drag the economy. there is very little on the fiscal and spending side that the government can do to stimulate the economy.

moderate side interest rates are nearly zero. that's what got the market worried. normal policy lovers are not in place to stimulate the economy. >> spending cuts don't worry you. >> not those levels of spending cuts. there will be automatic trigger to cause problem in 2013. >> congressman ryan what is left. the president wants to tend the pay roll tax cut and put seed money in a infrastructure bank. i know stimulus is a dirty word. could you support any of those to give a boost to the economy? >> i don't want to repeat the same mistake. this is the same reasoning logic that the president said on the stimulus and said it would keep unemployment from going over 8 percent. it doesn't.

it exacerbates. i will not go in unemployment the tax reform. those things are temporary and they are not working and facil itate ubuncertainity for the businesses. this increases the uncertainty on what the future holds for them. this exaser bates the problem. we think the keys to this. the best thing to do in the body of government i would love to see is fundmental tax reform and a tax system that isly competitive and does not penalize business for hiring people. we have a uncompetitive tax form.

i hear talk from democrats that they are interested in taking a look at i felt that tax reform is the best way to go and i do believe that getting a conjectory and real entitlement reform that shows the world and country we are getting the debt under control . it will help the economy today. >> chris: mr. miller, lay it out in a side by side comparison. the democratic plan to boost the economy is extend the pay roll tax cut and unemployment benefits and create an infrastructure bank. republican plan is cut corporate taxs and roll back regulations and expand the u.s. energy production. question. when you look at the republican or democrat plan which is the better to boost the economy and get more buy in for the market.

>> what the market wants to see reduction in uncertaintyy. fundmental tax reform and lowering marginal rates is important. democratics short term pay roll tax cut is good and unemployment is good. fundmentally tax reform. >> congressman ryan, congressional leaders have to name the members of the so-call would super committee to come up with one and half in trillion deficit reduction by thanksgiving, talk about having a deadline. have you been told that you are on the committee in and do you want to be on the committee? >> no, i haven't talked -- told. i would put it in the committee perspective. it is a select committee . tasked with spending cuts as we

see them. we proposed 5.8 trillion. we have shown plenty of ways to arrive at the number. we have to show whether our friends on the other side of the aisle can. we have a trillion in saving from government agency budgets and want to get another trillion or so in savings from entitlement spending, it is not enough to fix the problem but it is a down payment on the problem. chris, we wouldn't talk about the savings or spending cuts had we not taken the majority and gotten this agreement. the president warned and wanted a tax increase . so what did we end up with? cutting more spending for the dollars of debt increase. i hope they make good on the word about cuts. >> chris: this is an easy question to answer. if speaker boehner said paul, i want you on that committee,

would you go on? >> yes, i would if he did that? >> chris: you want to be on it? >> look, -- i am not putting my stock in the committee. i think people are overemphasizing what the cmmittee is going to achieve. i don't think the committee will have a full fix to the problems. democrats are not wanting to address the health care bill or put out a plan. the president hasn't put out a specific plan to fix the problem and they don't want to go with structural entitlement reform which is what you have to do to get the economy growing, i will do this but i want to make sure people understand that i don't think it is going to fix all of our fiscal problems. i hope it is a committee that will get a down payment on the problems. ultimately i think the leadership in washington needs to be changed. >> chris: let me --

let me just in here. you are bringing up a bunch of points i will ask you about. you talk about the lack of openness and not passing a budget by the democrats. but your open mindedness and you got a deal that three or four dollars in spending cuts and entitlement cuts for every one dollar for revenue increases, and that came through tax reform where you lower rates but close the loop holes and deduction says and use some of that for revenue and speaker boehner agreed to use 800 billion of that at least temp rarelyy, would you be open minded as including that revenue to a debt deal. >> it all depends on the spending side of the ledger. can you get higher revenues with growing. the answer is yes. we have yet to see a response to the question. are we getting the spending line

down to 20 percent of gdp. it is going to 40 percent gdp and we have yet to see three-one or four-one whatever you call it. we have yet to see a commitment to bring the spending line down. if you are raising revenues to chase spending that is not good policy. if we structure the entitlement programs and getting the spending line down to meet the revenue line then you will have more economic growth the worry is yes. but i don't see any agreement getting close to doing that? >> chris: i will bring in mr. miller, one last question for you. is this super committee a formula for a stalemate or do you see a chance of a grand bargain? >> i think it is a start at best. it is stalled on both side--

staffed on both sides by the leadership. the key issue for markets is long-term entitlement reform. discretionary spending doesn't mean a lot. it is a policy and fundmental entitlement reform especially on health care . therefore, the long-term confidence in the market in the country. >> chris: finally congressman ryan you talk about the change of leadership. you recently that you want to see how the gop presidential field develops before you make up your mind. you have got the best job in washington, but it sounds like there are some circumstances under which you would consider running for president, what are they? >> my answer is no. i misheard the question. i thought he was çme who i was behind. my answer is the same.

let me conclude this. i don't think a grand bargain is coming out of this. i hope for a decent down payment on debt. >> chris: gentleman, we'll leave it there. interesting discussion and thank you for joining us congressman ryan and bill miller. >> thank you, chris. >> chris: up next a big week in iowa for the presidential field. we'll ask tim pawlenty what is at stake for him. we'll be right back. what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and 4g devices like the motorola photon. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com.

>> chris: now we continue our series of 2012 one on one interviews with gop presidential candidate a man who hope to boost his chances in the fox news debate and iowa straw poll. joining us from west bemoin - des moines is governor tim pawlenty. >> guest: i lost you, i am sorry. >> chris: good. i am glad we got you. some are saying that your campaign is starting to pick up momentum. are you going to surprise people with the showingames poll? >> we will. doing health care the right way and cutting government spending and we have spent time in iowa. we'll show good progress but our

real goal is the caucuses next january and february. that's the objective for the candidate in iowa. there is talk in the ground about momentum. we'll go for now with the hard numbers and they are not encouraging. we'll put them up on the screen. you spent 42 days in iowa and cs michelle bachmann is leading with twen percent and romney at 22.3 percent and you are a distant third. when you have campaigned longer and harder why is congresswoman bachmann beating you? >> guest: the early polls don't predict the final outcome. rudy guiliani or hillary clinton would. we are seeing momentum and you will see good progress and week from saturday, the proof will be

in the pudding and you will see our campaign moving to closer to the pack. my record in minnesota's government and getting things done in a liberal state . health care reform the right way. people are seeing the record and did it under difficult circumstances and they are responding. >> chris: obviously you and bachmann are from minnesota and appealing to a lot of voters. evangelical and social conservatives and you are taking shots at congresswoman bachmann. you say no accomplishments in congress and makes a lot ofs and doesn't get results. is that fair? the congresswoman founded the tea party in the house and first congress person to call for the repeal of obama care begin the fact she was in the minority until this january. aren't those accomplishments? >> guest: couple of thingings.

i can unite the whole conservative movie. economic conservative and social conservatives and a few more. i have a record to appeal to the whole thing. many of the candidates appeal to one chunk but not all. that is an advantage. to congresswoman bachmann one of the minimum prerequisits of being the president of the united states that you run a large enterprise with a public component . i have done that. and my comments of her record in congress. great congress and all three amendments that didn't pass. but cutting government spending, getting health care done the right way. not talking but doing it and accomplishing and getting results. her record is not existent. >> chris: she couldn't defeat

obama care by herself? >> >> guest: we are held to our results. whether you have talked about it or begin rhetoric, that is one of the themes. after barack obama, he came through iowa and gave soaring speechs and incredible comments and the democrats brought it in iowa and catapulted him to the president of the united states. he was not prepared for the job and hadn't run anything and record of results were nonexistent. we don't want to repeat that mistake. >> chris: are you comparing bachmann to obama in terms of not being ready for the job. >> guest: the next president of the united states should have executive experience with results running a large enterprise. i have that experience. it is one of the strengths i bring to the race. >> chris: talk about your record. the congresswoman fired back on

you. compares you to barack obama and said you left a five billion dollar budget mess in your state which is one of the reins we had a shut down in minnesota? >> guest: my record in minnesota is one of the best. caddo institute which is a libitarian organization gave only four governors an a grade. i am one of those. the other three are not running. historic highs and historic lows and health care reform the right way and public employee compensation reform before it was cool and popular. everything that republicans are talking about, and needing for the country to need, i have done. i don't just flap my jaw and talk about the hopes of getting it done. i have done it under difficult circumstances in minnesota. look, i have a few battle scars, but my record is one of the best of any governor in the country.

>> chris: governor, talk about the downgrade of our credit rating that we talked about so far on this program. s&p blames the political grid lock in both parties. bashing the democrats and the republicans. you say that you don't support the compromise after weeks of negotiating that they came up with if. if the problem of grid lock wouldn't president pawlenty be a part of the problem. nest i never had a republican legislature in my state and all of those things were accomplished. one of the ingredients of breaking the grid lock is having a leader. the president of the united states who has the courage and experience and fortitude to lead. look at this president. we can't find him. where is his specific public plan on social security reform? and on medicare and medicaid reform? we shouldn't have to play come

out, come out where ever you are with the president of the united states. he has a responsibility to lead and he should step forward to the microphone and lead the nation under pressing challenging issues of our day. he's hiding on the issues and ducking on the issues and he should be leading. he has an obligation and responsibility to do it. >> chris: you talked about before. you were back in the pack and you think you will be up nire the lead when we get results the ames straw poll. don't you have to beat congresswoman bachmann in ames. >> guest: no, we need to show progress. these things sort out . everybody's records get scutinized it is a long journey for a reason. american people want to kick the tires and hopefully will be

limited to just kicking the tires. i think we will do well. we'll have to show progress and in the position to win the caucuses and that is the ultimate objective. >> chris: as we just said, are third in the polls, some what distant but are third. don't you have to finish third in ames. >> guest: i thought you said i was not. >> chris: no, i said you were third. >> guest: in the des moines register poll which is the credible bench mark had me in sixth or seventh place. our goal is to move close to the front. we need to show a good progress and i am confident we will. the record from minnesota continues to get out. >> chris: governor pawlenty, thank you for joining us and we'll see you thursday night in ames for the fox debate. >> guest: i am looking forward to it.

thank you, chris. >> chris: coming up who is likely to come out on top in the iowa straw poll? specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare.

>> everything that president obama and appointees are is socialism. >> this president destroyed the credit rating of the united states through failed economic policis and his inability to

control government spending by once again raising the debt ceiling. >> yes, we can. thank you. >> if i don't have this, it will be a one-term proposition. >> chris: well, some of the republican presidential field ramping up the ret tick against president obama as they prepare for a big week in iowa. here is byron york and susan ferrechio from the examiner and. kirsten powers from the new york post . juan williams, we want to point out by ron and susan will be two of the questioners on the fox debate on thursday. by ron who has the most riding? >> i think tim pawlenty has the most riding without a doubt. he gets to define what good progress is. michelle bachmann is in the lead

and somebody other than bachmann and mitt romney in the debate but in new hampshire for the straw poll. he pulled himself kind of out of the this . on the other hand look at traw polls in the past? sam brownback and ron paul, tom finishers in the straul polls and steve forbes finished in the straw poll. it doesn't tell you who is out in the caucuses. >> chris: that's right. who wins the poll doesn't win the caucus and we are going to cover it still. susan. we have touched on this. one of the story lines in the debate is tim pawlenty versus michelle bachmann. they are counting on a strong showing and they appeal to tea partiers. what are you looking at those specifically. pawlenty is more

organizationinized and been there long yer working harder. he could pull off a surprise first or second or third and steal the spotlight away from bachmann. she is newer at this and not as well organized. as well as in the polls she may fail more poorly. the iowa straw poll is about organization and getting people out. it will be the real fight here who is able to get people to the polls? people are looking at pawlenty as someone who can pull off the win because he worked hard exer got a good ground game. >> chris: if you think the caucus an organizational battle, the straw poll really, only a matter of few thousand voters and who can get them to the auditorium on buses and they rent space and hold barbecues to get people to eat and vote which if someone gave me food, i would

vote for them, too . so it really is an organizational battle and a test of not just general support in the state of iowa but the country and who can get people saturday afternoon in to ames. i will talk about somebody else not participating and that is the front runner in the polls in the polls and fund raising, mitt romney who has held remarkably few public events and flown under the radar politically . the website talk would about the mittness protection program which is a good line as if he was hiding in arizona or something. so far, it doesn't seem to be hurting him. do you expect his rivals to go after him and how do you expect romney to respond? >> he is the one to go after. i think that the debate is going to influence what happen in ames. it is an opportunity for people to break out pawlenty, last time

really didn't go after romney, i expect him to come ready to go after him and people need to go after the front runner, what pawlenty was doing in the interview with you. taking swipes at michelle bachmann will back fire on him saying things i am not just flapping my jaw and implying she is not. he should go after obama and romney. >> well, it will be a rough ride for mitt romney. from what i am hearing, he's getting a new stage of his campaign and i think people in arizona have feelings about what you said hiding in arizona. >> that's where they end up. that's all. >> and i just want to say that. >> chris: i didn't mean to disparge. >> you want my time? >> chris: go, g. -- go. >> pawlenty came to the program

with you, chris and gave you the term obomny care . he lacked spark and did not appeal for the tea party who is looking for someone to bash president obama. on the question on the establishment side of the ledger, is he going to emerge strong to go forward with romney? he has to take him on. you will have nine people on the stage for your debate. >> chris: eight who is counting. >> this is going to be difficult to make a strong impression. they have to be singlar and focused like a laser. my bet the entire target is mitt romney. we are all talking about rick perry is he going to get in. yesterday he held a big prayer

rally in houston. let's take a look. >> our heart breaks for america. we see discord at home. we see fear in the market place. and for that we cry out for your forgiveness. >> chris: fer perry is a devout evangelical. from a political standpoint. that is the first time americans had seen him focusog that or strong record of job growth. >> i watched his performance and he raised the bar among the candidates. when he enters the race we will find out he is not a cup tea for the republicans. economic republicans are not going to love that. as far as iowa is concerned. last time caucuses were won by a

preacher . mike huckabee. >> and george bush who said jesus christ was the philosopher. that will not hurt him in iowa. >> chris: we have to take a break. when we come back, a wild week on wall street . the fall out and what it means for tomorrow's market open. instead of real people.robos 'cuz robots work for free. robot 1:good morning... robot 1:...female child. sfx: modem dial-up noise woman: flaws? yeah, um, maybe. anncr: there's an easier way to save. anncr: get online. go to geico.com. get a quote. 15 minutes could save you 15% or more on car insurance. is it the new forty, i don't know. i probably feel about thirty. how is it that we don't act our age? [ marcie ] you keep us young.

[ kurt ] we were having too much fun we weren't thinking about a will at that time. we have responsibilities to the kids and ourselves. we're the vargos and we created our wills on legalzoom. finally. [ laughter ] [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side. >> chris: check out foxnewssunday.com and a special monday preview of the week ahead. you can find it at foxnewssunday.com and let us know what you think. stay tuned for more from the panel. 

>> when i first said change it was not change to believe in tomorrow or next week, we knew this was going to take time. because we have got this big messy tough democracy. >> chris: president obama trying to buy more time for his economic policis and we are back now with the panel. we talked with the market experts and the question is how big of a deal will the downgrade and s&p downgrade be in the political arena, juan, what do you think it will be in washington and will the president get most of the blame rightly or wrongly he is is in charge. >> he is in charge and people will have to make a judgment about him handling the economy. you can't just blame the past.

he was handed a bad deal economically. but going forward now, who gets the blame and if you look at polls right now, american people don't think well of his handling of it. his numbers are down historic lows to 40 percent and the new york times has him a little higher. but who gets smashed in the polls is the congress. they are at 8 percent, 6 percent in some polls. everybody thinks what happened here was a travesty . basically, people are sick of what is going on in washington and want to see member come in and actually put the country first and get to the serious business of handling it. that is the importance of the s&p thing it is symbolic and psychological. but it does suggest, what is the moment here in terps of american history, - terms of american history. moment of high unemployment and

economic crisis over seas and italy at particular risk right now think that the government can't respond effectively. >> chris: the buck may stop with the president. but the republicans drove a hard bargain and the polls indicated that voters don't approve of that and a new york times poll found 47 percent disapproved of obama's handling and 46 approved . 56% disapproved of congressional democrats and 72 percent disapproved of republicans. public opinion of the tea party are negative because they drove the hard bargaining. >> the polls are what they are . the polls don't like how at a are handling this. david beers thought the market place and interest rate would be minimal. >> chris: the official.

>> the analyst. but they are parts of the report. they don't like politicians bickering and there are other credit ratings that have not lowered the u.s. rating. what politicians say is important but what they do is more important. but the republican driven plan has come up with a plan to reduce spending significantly which should help the debt situation. >> chris: susan what juan referred for is general disgust with congress. 82 percent. they now disapprove of republicans and democrats and highest number since they started to ask the question in 19sphen. i know it is early. are we conceivably headed for another change election as we had in 2006 and 2008 and 2010 where they want to see huge turn over both in congress and in the

white house? >> if the economy doesn't approve we are at risk of that happening in the next election. no one is work their housing values has drop and everyone wants to see something happen . they sigh fight nothing congress. i am there every day, and things do get done. they are so divided over how to move forward with a big deficit. is it raising taxs and bringing revenue in the treasury or cutting taxes and spurring economic growth. they are so far apart on the issue. every time they try to resolve the problem with the deficit and jobless rate and economy. they come to a big stale mate . end result people are still out of work. they say it is not work it is time for someone new. and in 2008 when tarp was going to be passed and the house defeat tarp and there was a split screen showing the action

in the house defeating it and the stock market went down and everybody got terrified including the politicians. could you see a combination of where the downgrade and negative reaction from the markets and where washington and i include everybody. republicans and democrats everybody gets scared straight. >> yesterday s&p warned of a second downgrade. this will not necessarily hit you in the pocket book. it is a negative outlook and the warning is congress, do something and fix this. that is the very thing that to get them past the usual grid lock. they passed the tarp . they passed a massive package in record time it is that kind of thing that gets congress off of the grid lock. something like that and exair scary economically and get them to move and put the right people

on the super committee and come to a compromise that will bring in revenue and big cuts. not just one way or the other. >> i think it is scary when you consider the fact of what you are saying it takes that to get them to focus and that was so much what the report was about. it was in the them saying that the u.s. economy is a bad economy. it was them saying we are looking at the fut and you are we are looking at the debt and say you people are not capable of fixing this problem and that is the concern. if it is not dealt with in the future. the country will be in decline. warren buffet said the rating was wrong. i would have begin the u.s. a quadruple a rating if i could. it is not whether where we are now. but they say people in congress and the president need to figure out how to work together. >> what are the chances of

combination of downgrade and maybe we hope it is not happening a negative reaction on wall street will shake congress and the white house and get them to come off of the dime. >> it is like 50-50. i feel they are thoroughly irresponsible. >> chris: thank you panel. see you next week. our group picks up with the discussion on foxnewssunday.com . we'll post the video before noon eastern time. up next, a special program.

captioned by closed captioning services, inc.

>> chris: and now program notes. be sure to watch our fox news. washington examiner gop presidential debate from iwampt by ron and susan and i will ask question and bret bauer will moderate. on thursday. next weekend, we'll report from ames with the result of the iowa straw poll and our guests will be congresswoman michelle bachmann. that's it for today. have a great week. we'll see you next week on fox news sunday. captioned by closed captioning services, inc.